lead-generation-marketing-1: infomercial

Monday, August 12, 2013

Great Marketing: It Slices, It Dices...

Hey, friends. Are you tired of your marketing budget getting slashed every year? Are you embarrassed because your CEO looks at Marketing as the Arts and Crafts Department? Well friends, have I got the answer for you…

The Seg-O-Matic … It slices, it dices, it improves your response and blows up your ROI.

Alright, I know I sound like a bad '70's, Ron Popeil infomercial. But, hey ... that cat knew how to sell!

Seriously, folks ... segmentation is all about slicing and dicing. Here's an example:

We have a client who is rolling out a new interest checking account. Like many other smaller institutions, they previously only offered Free Checking and are now expanding their product line with the hopes of acquiring more checking, increasing retention and increasing services per household.

In the span of a 10 minute conversation, we had 7 target segments:

Members who qualify for new product - Move them into it
Members who qualify by balance but missing ancillary product - Motivate them to open more services to step into the new checking (this segment could have been more than a dozen individual segments is we focused on exactly what they were missing)
Those who are close in average balance - Increase balances/retention
Members who have required balance in deposits but no checking - New checking/retention
Non-checking with loans - New checking, focus on convenience of online banking
Non-checking without loans - New checking
Acquisition - Self explanatory (this could also be countless segments, but this SEG-focused institution has access to a very targeted list)

So there you have it, an instant strategy for product roll out by simply considering who the product affects, what each segment needs and what those needs have to offer to your objectives.

This client has fewer than 8,000 members, so it would have been easy to create a postcard to sound the trumpets and proudly proclaims the coming of "The Greatest Checking Account in the History of the World." (Could you hear the echo when you read that?!?!)

We could have printed 8,000 pieces, used "Dear Member" as the salutation, mailed them out, sat back and counted new accounts. But our clients (and your members/customers) deserve better than that.

Segmentation goes far beyond the "haves" and "have nots." Consider your target's needs, how they use you and how you want them to use you.

The more targeted you get, the more personal you get. The more personal you are, the better you can:

Speak to specific needs
Focus on specific calls to action
Address different objectives in one campaign

The goal is to get as one-to-one as possible. In our example, there were only about 50 members who qualify for the account today. They could easily be called at home in a few hours.

Once you've sliced and diced and analyzed your segments, you'll have a better feel for what tactics you can use to communicate with each. Does your culture fit an external call effort? Can you trust your team to send personal letters? Can you create a process that looks more personal but still takes the responsibility off the front line staff? Should you?

I believe that everything can be prioritized. Once you have a feel for the quantities in each segment and how those segments like to use your institution, you can use this list as a guide:

Hierarchy of External Conversations

Personal phone call
Personal letter from relationship manager
Postcard direct mail/email specific to the segment
Mass media

But Wait … There’s More!
How much would you pay to increase your response rates?

But wait ... there's more!

Not only does the Seg-O-Matic give you personalized conversations and more meaningful calls to action ... it also allows for better campaign tracking. Yes, my friends, you get it all ... a one-to-one conversation, more objectives met, the power to know which segments respond and which you need to tweak. Now how much would you pay?

But hurry, this strategy is not sold in stores. It's available to you only for a limited time. Call today!

For more lessons from infomercials click here.

We bring these marketing philosophies to credit unions and community banks nationwide, and would love to bring them to your institution too. Contact us to see how.

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Tuesday, March 26, 2013

But Wait! There's More!

They are marketing's used car salesmen, but they work! They make you question your sanity when you pick up the phone, but you make the call. We've all fallen prey to them at one time or another ... the infomercial.

When we can't sit through a 30 second ad, what is it about this scourge of media that makes us sit through a half hour of "too good to be trues?"

I'm not saying that, as respectful marketing professionals, we should don the plaid jacket and start yelling at our audience. But, I believe that there are lessons in everything. And, since these 30-minute scream-fests seem to work, there are lessons we can learn from them as well.

What makes infomercials so damn successful?

Identify a Problem or Need
They may invent a need that I didn't even know I had, but man do I need a kitchen knife that can cut through an aluminum can!

We are all in business for a reason and that's because we represent a better mousetrap. If we didn't, we'd fold-up shop. Especially my credit union and bank readers! Most days, our members want us to just not screw up ... clear their checks and make sure that their balance is what they expect. But when they need us, they REALLY care about us. We are their gateway to that new house, new car or retirement! It should be no problem at all for us to identify a real problem or need.

Get Their Attention
Whether it's a Shake Weight, the Magic Bullet or the George Foreman Grill, people talk about infomercials. Maybe it's because the product is so darn amazing or maybe it's just because that Sham Wow guy is so psychotically excited.

Have you seen most credit union and bank ads? A little psychotic enthusiasm wouldn't hurt us!

Provide a Clear Promise
It's not that the product "melts" belly fat, it's about the way your spouse looks at you and the confidence that you now have. The BENEFIT isn't in what the product does, it's in how the product makes you feel. We need to remember that ... FREE checking is NOT a benefit.

Infomercials also make a clear and convincing case for the benefits that they offer. Often through testimonials or before-and-after examples. As financial institutions, we change people's lives every day. It should be no problem sharing how we can help others.

Strong & Immediate Call to Action
This is the cornerstone of all infomercials. I've seen the same juicer offer for 3 years now that says I need to call in the next ten minutes!

If we've made a clear case for why they should choose us over the competition than we are doing the audience a dis-service if we don't encourage them to come in today. Every minute they don't bank with us is another minute of misery.

Provide a specific, relevant offer and create a sense of urgency.

With a little more infomercial in our efforts, maybe we too can have our audience sit through our spots, be inspired to pick up the phone and create a little buzz.

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With nearly 195,000 visits worldwide, we hope that you enjoy this blog. If you find it helpful, please share it with your colleagues. Also, check out our YouTube Channel for short video blogs about financial marketing.